Will Whale Selling Postpone Ethereum Price Rally To $4,000?

During Friday’s Asian market session, the crypto market witnessed a slight uptick as Bitcoin price is nearing close to the $100k milestone. Following the same momentum, the altcoin market witnessed a renewed buying press, bolstering major assets like ETH for key breakouts. However, Ethereum price faces the risk of prolonged correction as onchain data reveals a surge in whale selling.

Currently, the ETH price trades at $3,615 with an intraday gain of 1%. According to Coingecko, the crypto market cap holds at $3.5 Trillion, while the 24-hour trading volume is at $194.5 Billion.

Key Highlights:

  • Amid broader market recovery, the Ethereum price retested a downsloping trendline intact since May 2024.
  • The 20-day EMA continues to offer suitable pullback support to the ETH coin.
  • A surge in ETH whale selling hints at a breakdown below the $3,500 floor.

Ethereum Price Faces Pressure as Major Holders Offload Millions in ETH

The second largest cryptocurrency, Ethereum, has recently witnessed a surge in whale activity, which caught the attention of major holders offloading significant amounts of ETH. Winslow Strong, director of the Qualia Research Institute, deposited 9,380 ETH ($33.7M) to Coinbase, 

Since the Ethereum price rally began in early November, the whale has offloaded most of his remaining ETH holdings, totaling 14,233 ETH ( worth approximately $48.8M) at an average price of $3,431.

Similarly, Ethereum co-founder Jeffrey Wilcke sold 20,000 ETH ($72.2M) to Kraken at $3,608/ETH. Notably, he still holds 106,006 ETH ($384M), leaving the market speculating about his next move.

These significant sell-offs by prominent holders point to rising whale activity, raising concerns about Ethereum’s short-term price trajectory. Historically, whale selling has coincided with major market tops and witnessed limited recovery in the near term.

ETH Price Eyes Breakout from 7-Month Resistance

On November 27th, the Ethereum price recorded a massive 10% jump to $3,888, allowing it to challenge the downsloping trendline for the past 7 months. The last reversal from this dynamic resistance in May 2024 triggered a 46% fall to hit the $2,110 floor.

Thus, a potential breakout from this resistance could further accelerate the bullish momentum and invalidate the bearish thesis. The post-breakout rally could push the ETH price to $4,875 ATH, accounting for a 35% surge.

BITSTAMP:ETHUSD Chart Image by sahilmahadikks7a4

A bullish crossover between the 100-and-200-day EMA could further accelerate the buying pressure.

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